Thursday, December 15, 2011

Recent Sell #3

The selling continues. 

In one month alone I have now sold six of my fifteen holdings.  (But stay with me.  Let's see how this turns out.)

This article will highlight two more companies that I have targeted to be eliminated from my dividend income portfolio.  The two companies that I have now sold my entire position of were:

Automatic Data Processing (ADP): I bought ADP back when it was around $39 a share, and have  recently sold at around $50; what a blessing.  As with my previous sales, ADP was only 5% of my portfolio and therefore not a significant portion of my dividend strategy.  As many of you know, ADP is an excellent company, the largest in the human resources administration services (and a competitor of another of my holdings, PAYX).  ADP has been raising distributions for 37 years and currently pays a 3% yield.  Nevertheless, I am hopeful that these funds will earn more when used elsewhere.

Cincinnati Financial (CINF): CINF has been raising distributions for 51 years and yields over 5%; a great track record for dividend investors seeking a safe return.  Despite its great dividend history, however, it hasn't seen much capital gains this year, and I probably paid slightly too much for it when I bought initially.  As a result, for me personally it probably was not the best investment (though by no means a bad one).  I enjoyed 4 dividend checks and cannot complain about being a shareholder.  In conclusion, it was a small portion of my portfolio at only 3%, and I was happy to sell when I did.

In conclusion, this is the third article in my "Recent Sell" series; which as you know, has the ultimate underlying goal of raising the necessary capital to fund my day trading plans as a new piece of my overall investment strategy.  I am confident that I can incorporate this new strategy and beat a 4% or so return that many blue chip companies are paying through dividends.

I'd ask that you stick around long enough to at least see the "near term" results of this plan.  Or, if you have any advice, I'd appreciate that as well.

Thanks again,

DividendPartisan



Posted by Passive Income Dude at 9:29 PM
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9 comments:

  1. My Own AdvisorDecember 16, 2011 at 9:33 PM

    Man o' man, what is going on here?

    Selling dividend aristocrats and achievers left and right????

    Are you becoming an indexer?!

    ReplyDelete
  2. My Own AdvisorDecember 16, 2011 at 9:35 PM

    Sorry, I forgot to add:

    Are you really going to try day trading???

    ReplyDelete
  3. daveDecember 16, 2011 at 11:03 PM

    IMHO: You're going off on a tangent. To try to become a trader (day or short-term [3-month]) is going to prove out to be a mistake. But Good Luck. And are you going to change your blog's name?

    ReplyDelete
  4. Passive Income DudeDecember 17, 2011 at 11:11 AM

    My Own Advisor,

    Thanks for the comment! I am in fact starting the day trading game. I've made several trades thus far and am now pretty close to fully established where I want to be as far as with accounts and capital, etc.

    I don't really index except in my roth IRA. Take care,

    DivPartisan

    ReplyDelete
  5. Passive Income DudeDecember 17, 2011 at 11:16 AM

    Dave,

    Thanks for the comment. I'm curious as to why you think it will be a mistake? I am hopeful..

    And about the blog's name, it will stay the same. I am only highlighting this strategy now with several articles because it is a change that I've been trying to get established over these past few weeks.

    Take care,

    DP

    ReplyDelete
  6. AnonymousDecember 17, 2011 at 8:23 PM

    What are you planning on trading? Forex, Commodity Futures, Stocks, Stock Options, or ETF's?

    ReplyDelete
  7. Passive Income DudeDecember 18, 2011 at 8:46 AM

    Anonymous,

    Nothing too complex yet...just stocks and stock options.

    Take care,

    DivPartisan

    ReplyDelete
  8. MrGreenshanksDecember 21, 2011 at 11:45 PM

    Hey do what you think is right. I remember something I read a long time ago, that kind of explained a lot for me about day trading...any idiot can make money day trading in a rising market...cant remember where i read it or if it was a direct qoute, but whatever lol...if that is true you may be hitting the market at the right time with this strategy, since the market has taken off the last two days.

    ReplyDelete
  9. Passive Income DudeDecember 22, 2011 at 2:00 AM

    Mr. Greenshanks,

    I appreciate it! I am still an avid dividend investor at heart. I just think that I can take on a little more risk right now. Take care,

    DividendPartisan

    ReplyDelete

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